Chan v Terra International Holding Inc


Reference:
5 July, 2011, unreported but online

Date:
5th November 2011

Court:
High Court, British Virgin Islands

Comment:

The sole surviving executor of a Hong Kong testatrix sought rectification of the share register of Terra to substitute his name for the testator as the sole holder of the only share in issue. Terra was the trustee of a trust in which the estate and other members of the family were interested. The trust held some $30 million through a subsidiary. The application was resisted by other members of the family as part of a family dispute. Held: Under Terra’s articles, which were in common form, it was bound to register a personal representative as holder of a share in the name of the deceased on production of probate or letters of administration.

This sort of dispute is not unusual. The decision is that a company is bound to give effect to its articles. If there is some wider dispute, those who want to restrain a personal representative have to find some other basis for doing so and cannot interfere with the entitlement of the representative to be registered. There have been linked proceedings in Canada, see Chan v Chan 2012 BCSC 192.

Associated Members:

Practice Areas:

© New Square Chambers Ltd